Lagarde warns economies of risks of 'prematurely' ending stimulus measures

IMF chief Christine Lagarde has warned central banks not to end their stimulus measures too soon as it could create market turbulence.

According to the BBC, Lagarde pointed out that stimulus policies were still needed in some regions, especially Europe and Japan, even as there has been much debate about when supportive policies should be wound down as the global economy shows signs of improvement.

The US Federal Reserve has signaled that it may slow down its huge monthly bond buying programme, an indication that has hit stock markets and currencies around the world, the report said.

Lagarde said that finance officials should prepare contingency plans in case market turbulence worsened, adding that deeper reforms could lay the foundation for durable and lasting growth.